Billet price in Iran domestic market started week 34th
at USD 413 /mt, until the weekend it reached USD 414/mt ex-work including 9%
VAT. In fact, market was stable. Also billet price at IME ( Iran Mercantile Exchange)
remained almost unchanged while the export trend continued and the last export
offer has been USD 396/mt FOB Iranian
Market stability is due to
two main factors including exchange rate stability and market recession and
negative sentiment of it.
Some market participants believe that this recession is natural and
others expect it to deepen because there is no demand, but in the current
situation, it is not clear where the market is going.
Average price of rebar, which was USD 474/mt on last Saturday,
reached USD 470/mt ex-work including 9% VAT by end of the week. Prices have reached a low point,
but market is cautious due to government policies. The main problem is that due
to the rapid acceleration of prices in July, cheap inventories of traders have
not been sold completely yet, and until then, there will be a waiting policy in
the market, which will not allow the market to be active. Regardless of the
price issue, lack of demand also is affecting long products market.
HRC 2 mm thickness was priced at USD 806/mt ex-work Esfahan
on last Saturday, which reached USD 778 /mt by end of the week. Mobarakeh Steel
co HRC thickness 3 to 15 mm on Saturday was on average USD 704/mt, which
reached USD 696/mt ex-work including 9% VAT by end of the week. The main reason for the
drop in prices was lack of demand and market waiting policy, while nothing
special happened on the supply side.
Oxin co HRP thickness 10-40 mm, which was priced at USD
718/mt on last Saturday, reached USD 721/mt ex-work
including 9% VAT by end of the week. The improvement in demand for
thicknesses of 20 to 40 mm made average price upward. Kavian co HRP, which was priced at USD 661/mt for thicknesses 12 to 25
mm on Saturday, dropped to USD 649 /mt by week end.
CRC market was almost stable. The average price on last Saturday, which
was USD 1095/mt, reached USD 1096/mt by end of the week, but market was calm
and demand level was not serious.
HDG price fell from an average of USD 1554 /mt on
Saturday to USD 1032/mt ex-work including 9% VAT. Lower HRC price and stability
of ex-rate made HDG price lower.
In the current situation, the steel market is at a
standstill because demand is low and there is cheap inventory available in
CBI weekly average ex-rate for Steel
Products (SANA): Rials 197.820 / 1USD
24 Aug 2020